Credit Reporting And Chattel Mortgages

Your credit report is one of the main considerations that lenders use to determine to approve or decline your mobile home financing. Another factor that effects the approval procedure are your income, savings (retirement accounts and personal savings) and any other assets such as stocks or bonds.

With a weak credit score (under 700), lenders classify you as a higher risk to finance for a manufactured home purchase. Based on your credit score, the lender will bump up your interest rate to offset this risk and realize a higher immediate return on your manufactured home financing in the form of the interest paid.

A higher credit score (above 700) indicates to the lender that 1) you are decreasing likely to default on your home loan, 2) you will be making your manufactured home or mobile home home loan payments on time and 3) they will see a return on their investment in the long run. The higher your credit rating is, the lower the interest rate you will receive from the lender for your manufactured home or mobile home financing.

There are several potential maneuvers to achieve a higher credit score, which will increase you odds for qualification for mobile home loans. Contrary to popular belief, credit card debt negotiation companies and credit counseling services can frequently harm your credit score in the near future, and wreck your potential for new financing. It’s really as simple as making your payment deadlines, sending even slightly more than the minimum payment, and slowly paying off your existing debts can work efficiently to raise your credit score and improve your chances of securing manufactured home financing. When you have your credit pulled often actually lowers your credit score, because it appears that you are in need of more lines of credit, which is quite negative. Obviously, you can see that it is not a good idea to apply for a credit card or a vehicle loan right before making an application mobile home financing.

It is not a well known calculation which results in a persons credit score, but the information on how to raise it are popularly accepted, and if you want to get approved for a mobile home financing program there are certain rules you must follow. Primarily it is quite important to always make timely payments. If you accidentally end up making a late payment, you must then contact the credit company, and ask them not to report it. Usually a creditor will simply make an internal note and not give you a ding. Whatever you do, just dont let a late payment happen again. Another important rule to live by is that someone should not have obligations that exceed the total amount of their credit. This is basically a ratio that shows whether you have maxed out your credit cards, or if you have used the credit lines responsibly. When you apply for mobile home financing, your loan company will pull your credit to check these ratios.

While your credit score directly affects your potential approval for manufactured home loans, your credit rating is also the determining factor in determining the interest rate you will receive from the manufactured home lender. Mobile home lending companies have what is called a rate sheet which shows a range of credit scores and the subsequent loan interest rates for the Mobile home financing that can be offered.

In the current harsh economic climate, there has been a somewhat dramatic requirement for a higher credit rating, which has made it more difficult to obtain manufactured home loans. What was once being considered as an above average score, a 660 is now the MINIMUM credit score for many lenders to approve a mobile home buyer. This is why it is the best idea to raise your credit score to the highest possible score before you move forward with applying for a mobile home loan. If you work hard for a higher score to appear, you will get a much lower interest rate, with lower monthly payments, also.